“It is the dollars in cost to buy and repay a mortgage that really matter, hence the importance of doing a comparison based on real dollars.”

Mr Edwards said the level of price growth in Sydney is a serious cause for concern.

“With the current median value of a house in Sydney now sitting at $900,500, this exorbitant figure makes it virtually impossible for the median income family to purchase the median value property,” he said.

“The stark reality is that Sydney is no longer an affordable place to buy and own a home if you are a first-time buyer.”

HSBC economists Paul Bloxham and Daniel Smith said earlier this month that “growth in Sydney housing prices is currently running at an unsustainable pace”.